The resolution HCR2052 proposes a temporary moratorium on the adoption, imposition, or collection of increased fees, transaction privilege taxes, and utility rates by municipalities and counties in Arizona from July 1, 2026, to June 30, 2030. During this period, local governments are prohibited from raising fees beyond the amounts established in their fiscal year 2026 budgets, with exceptions for municipalities that have not raised utility rates by more than 12% in the previous four fiscal years, allowing them to increase rates only in line with inflation. The resolution also restricts the adoption of new tax classifications or the expansion of the tax base, aiming to provide financial relief to residents and businesses amid rising costs.

To enforce these restrictions, the resolution states that any fees, taxes, or utility rates adopted in violation will be considered void, and local governments will have 30 days to rectify any violations. Aggrieved taxpayers will have the right to seek legal relief. The resolution includes provisions for the repeal of certain statutes effective July 1, 2030, and a severability clause to ensure that if any part is found invalid, the remaining provisions will still apply. Titled the "Local Cost-of-Living Protection Act," the resolution emphasizes maintaining affordability and economic stability while encouraging responsible fiscal management by local governments, and it will be submitted to voters for approval in the next general election.

Statutes affected:
Introduced Version: 9-500.54, 11-269.31, 2025-2026, 16-204, 41-194.01
House Engrossed Version: 9-500.54, 11-269.31, 2025-2026, 16-204, 9-463.05, 9-511.01, 41-194.01