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). This would apply only if the city's charter mandates an election for such a tax 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. The special election must occur on either March 10, 2026, or May 19, 2026, and the ballot must specify the TPT rate, which must match the rate previously authorized by voters.

Additionally, the bill includes a provision that would repeal these new regulations after December 31, 2027. This update to the current statutes aims to provide a structured process for smaller cities to seek voter approval for TPTs, ensuring that local governments can maintain necessary funding through taxation while adhering to the requirements set forth in their charters.