The proposed bill, if enacted, would introduce new provisions allowing cities in Arizona with populations under 10,000, located in counties with populations under 150,000, to hold special elections for the purpose of levying a transaction privilege tax (TPT). Specifically, it stipulates that such a city can conduct a special election if its charter mandates an election for TPT approval and if the city is currently levying a TPT that was approved by voters in 2020, which is set to expire on or before July 15, 2026.

Additionally, the bill requires that these special elections be held on either March 10, 2026, or May 19, 2026, and mandates that the ballot question must specify the TPT rate, which must match the rate previously authorized by voters in 2020. Furthermore, the new provisions would automatically repeal on December 31, 2027. The current statutes remain unchanged, with the new language inserted to create these specific provisions for special elections regarding TPT in eligible cities.