Proposed Measure Aims for Supermajority Approval on Local Tax Hikes

A proposed amendment to Arizona’s tax regulations aims to make it more challenging for cities and counties to raise taxes and fees. Senate Concurrent Resolution (SCR) 1008, introduced by Senate President Warren Petersen, stipulates that a two-thirds majority vote from municipal and county governing bodies would be necessary before any increases in assessments, taxes, or fees can occur.

This resolution builds on existing voting requirements related to taxation in Arizona. In 1992, Proposition 108 established the need for a two-thirds vote in both state legislature chambers for any increase in net revenue, including tax hikes or new fees. More recently, Proposition 132, passed in 2022, requires a minimum of 60% voter approval for tax-related ballot initiatives.

Currently, local governments must provide a 60-day public notice prior to imposing new business taxes or fees. SCR 1008 seeks to enhance this by mandating a supermajority vote at the local level for similar increases.

Key elements of SCR 1008 are as follows:

• A two-thirds vote by a city’s common council would be essential for any tax or fee increases.
• A two-thirds vote by a county’s board of supervisors is required for corresponding increases.
• The amendment designates tax and fee regulation as a statewide concern, thereby restricting local governments from implementing divergent rules.
• The proposal must receive approval from voters in the upcoming general election to become effective.

After legislative approval, SCR 1008 would be placed on the ballot for voter consideration. This initiative reflects ongoing efforts by Arizona lawmakers to impose further restrictions on tax increases at various levels. Proponents argue that a supermajority requirement will safeguard taxpayers from excessive government fees; however, critics argue that it could hinder local governments’ ability to finance essential services, including infrastructure and education.

The Senate Government Committee narrowly advanced the bill with a 4-3 vote, and it now awaits additional legislative review. If ultimately approved by voters, SCR 1008 would dramatically alter the revenue-raising mechanisms for local governments in Arizona, necessitating wider political consensus for any tax or fee adjustments.