House Engrossed

city election; transaction privilege tax

State of Arizona

House of Representatives

Fifty-seventh Legislature

First Regular Session

2025

HOUSE BILL 2946

AN ACT

authorizing a citywide special election.

(TEXT OF BILL BEGINS ON NEXT PAGE)

Be it enacted by the Legislature of the State of Arizona:

Section 1. City special election; transaction privilege tax; applicability; delayed repeal

A. Notwithstanding section 16-204, subsection F, Arizona Revised Statutes, a city that has a population of less than ten thousand persons according to the most recent United States decennial census and that is located in a county with a population of less than one hundred fifty thousand persons according to the most recent United States decennial census may hold a special election pursuant to subsection B of this section for the purpose of authorizing the levy of a transaction privilege tax by the city if both of the following apply:

1. The city's charter requires an election to be held in order for the city to levy a transaction privilege tax.

2. The city is levying a transaction privilege tax that was approved by the voters in 2020 and that will expire on or before July 15, 2026.

B. A city prescribed by subsection A of this section shall hold its special election on March 10, 2026 or May 19, 2026. For an election to authorize the levy of a transaction privilege tax held pursuant to this section, the ballot question shall include the rate of the transaction privilege tax. The rate must be equal to the rate that was authorized by the voters of that city in 2020.

C. This section is repealed from and after December 31, 2027.