Budget & Taxes

SB 1745 limits transaction privilege taxes (like local sales taxes on specific services) in Arizona cities and towns with over 550,000 residents to a maximum of 2.5% per tax category. It requires voter approval for any tax increase above this cap, with elections held on even-year consolidated dates. Existing voter-approved taxes remain exempt from the cap, but cities violating the law face state revenue withholding until corrected. The bill directly affects large municipalities' ability to raise local tax rates without public consent.

HB 2792 creates property tax exemptions for Arizona veterans with disabilities and certain other groups. Veterans with a 100% service-connected disability rating get full exemption on their primary residence, while those with lower ratings (service or non-service connected) receive a partial exemption capped at $4,188, adjusted by their disability percentage. Widows, widowers, and people with total permanent disabilities also qualify for a $4,188 exemption, subject to income limits of $34,901-$41,870 depending on household size. The exemption amounts and income thresholds automatically adjust annually based on inflation metrics. This bill directly affects eligible veterans, their surviving spouses, and qualifying widows/widowers by reducing their property tax burden.