Assigned to GOV FOR COMMITTEE
ARIZONA STATE SENATE
Fifty-Sixth Legislature, Second Regular Session
FACT SHEET FOR S.B. 1056
municipalities; counties; fee increases; vote
Purpose
Prohibits the common council of a municipality or the board of supervisors of a county
from increasing an assessment, tax or fee without a two-thirds vote of the governing body.
Background
Established in 1992 by voter initiative, Proposition 108 provides that a net increase in state
revenues is only effective on the affirmative vote of two-thirds of the members of each house of
the Legislature. If the act receives such an affirmative vote, it becomes immediately effective on
the Governor's signature. If the Governor vetoes the measure, it must not become effective unless
approved by an affirmative vote of three-fourths of the members of each house of the Legislature.
This applies to any act that provides for a net increase in state revenues in the form of: 1) the
imposition of any new tax; 2) an increase in a tax rate or rates; 3) a reduction or elimination of a
tax deduction, exemption, exclusion, credit or other tax exemption feature in computing tax
liability; 4) an increase in a statutorily prescribed state fee or assessment or an increase in a
statutorily prescribed maximum limit for an administratively set fee; 5) the imposition of any new
state fee or assessment or the authorization of any new administratively set fee; 6) the elimination
of an exemption from a statutorily prescribed state fee or assessment; 7) a change in the allocation
among the state, counties or cities of Arizona transaction privilege, severance, jet fuel and use,
rental occupancy, or other taxes; and 8) any combination of the preceding elements. The two-thirds
vote requirement does not apply to: 1) the effects of inflation, increasing assessed valuation or any
other similar effect that increases state revenue but is not caused by an affirmative act of the
Legislature; 2) fees and assessments that are authorized by statute, but are not prescribed by
formula, amount or limit, and are set by a state officer or agency; and 3) taxes, fees or assessments
that are imposed by counties, cities, towns and other political subdivisions of Arizona. Established
in 2022 by legislative referendum, Proposition 132 requires any measure or constitutional
amendment proposed as an initiative or referendum to approve a tax to become law when approved
by 60 percent of voters at a statewide election, rather than approved by a majority of voters
(Propositions 108 and 132; Ariz. Const. art. 4 § 1 and art. 9 § 22).
A municipality or a county board of supervisors may not levy or assess any new taxes or
fees or increase existing taxes or fees on a business without complying with a 60 day notification
requirement as prescribed (A.R.S. §§ 9-499.15 and 11-251.13).
There is no anticipated fiscal impact to the state General Fund associated with this
legislation.
Provisions
1. Prohibits the common council of a municipality from increasing an assessment, tax or fee
without a two-thirds vote of the common council of the municipality. FACT SHEET
S.B. 1056
Page 2
2. Prohibits the board of supervisors of a county from increasing an assessment, tax or fee without
a two-thirds vote of the board of supervisors of the county.
3. Becomes effective on the general effective date.
Prepared by Senate Research
January 22, 2024
JT/MA/slp