
On December 12, Arizona senator Warren Petersen prefiled Senate Bill SB1013, which, if enacted, will limit the ability of counties and municipalities to increase taxes.
Pre-filed bills are bills introduced before the legislative session gets underway and as such may not have any action taken until the legislature convenes, which for the 2025 session will be January 13. However, early filing is often considered as an indication of the high priority associated with prefiled bills.
The quest to limit the ability to increase taxes began in 1992 with the voter approval of Proposition 108. This measure imposes a 2/3 vote to pass tax increases by the state legislature.
In 2022, voters approved Proposition 132, which imposed a similar requirement on ballot measures aimed at increasing taxes. This time the threshold was lower (60% vs. 2/3), but still significant. This measure has been deemed by the courts to apply only to tax increases at the state level, not at the county or city level. That is why this year’s Proposition 479 was approved even though it failed to meet the 60% approval rate.
With the requirement of supermajority approval for tax increases at the state level by either the legislature or citizens, it is time to direct attention toward similar requirements at the county and municipality levels. Senate Bill SB1013 is a significant step in that direction.
It is very likely that Hobbs will veto this bill, and an override is not likely. The legislative gains made by Republicans in 2024 are not sufficient to enable them to override Hobbs’ vetoes by themselves, and Democrat support is not likely to occur.
Eventually, the supermajority requirement for tax increases at the city and county levels may have to be enacted via a ballot measure.