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Arizona Senate president seeks to raise bar for municipal tax hikes

By and December 14, 2024 | updated 10 months ago

(The Center Square) – Senate President Warren Petersen hopes to pass an additional barrier for local and county taxation.

Senate Bill 1013 would require a 2/3 vote by a council or by a county board of supervisors for approval of a tax “increase or fee.”

“The Republican-led Legislature has been successfully lowering fees and taxes for years. We cut the state income tax to a flat 2.5 percent, we delivered the largest tax rebate in the history of Arizona, and we eliminated the tenant-paid rental tax,” Petersen told The Center Square in a statement. “Although we’ve reduced state spending with permanent budget cuts to agencies, the federal and local government has been spending and taxing out of control. We even increased state-shared revenues to the cities and they are still raising taxes!” 

“It shouldn’t be so easy for local government to increase your taxes. That is why I will be introducing legislation to require a 2/3rds vote for local governments to increase taxes or fees,” he added.

There have been various changes in recent years related to the state’s tax laws. The rental tax, which some municipalities charge, will end starting next year after being signed by Gov. Katie Hobbs in 2023 as part of a compromise with Republican leadership at the time, The Center Square reported.

In addition, Arizona voters approved Proposition 132 in the 2022 election, which would only allow a new statewide tax if 60% of voters agreed to it.

The Center Square reached out to the Maricopa Association of Governments and the Arizona League of Cities and Towns for comment, but neither responded in time for publication.

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