The proposed bill would update current statutes by instituting a moratorium on municipalities and counties from July 1, 2026, through June 30, 2030, during which they would be prohibited from adopting, imposing, or collecting increased fees, transaction privilege taxes, and utility rates beyond those established in their FY 2026 budgets. This includes restrictions on any fee exceeding the authorized amount, any tax or surcharge increase beyond the rate in effect on June 30, 2026, and any utility rate increase above the FY 2026 budgeted amount. Additionally, the bill would prevent the adoption of new tax classifications or the expansion of the tax base during this period.

Moreover, the bill mandates that if a municipality or county has not established a comprehensive fee, tax, or utility rate schedule as part of their FY 2026 budget, the applicable rates will default to the highest rates imposed during that fiscal year. Any fee, tax, or utility rate adopted in violation of these provisions would be void and enforceable by the attorney general. The bill also includes a severability clause and legislative findings, while it would repeal A.R.S. § 9-500.54 and § 11-269.31 effective July 1, 2030.

Statutes affected:
Introduced Version: 9-500.54, 9-500, 11-269.31, 2025-2026, 16-204, 41-194.01