Arizona SB1745: local excise taxes; rate limit

What the bill says

An act Amending Title 9, chapter 4, article 8, arizona revised statutes, by adding section 9-500.54; relating to local excise taxes.

From the engrossed text, March 4, 2026:

AN ACT Amending Title 9, chapter 4, article 8, arizona revised statutes, by adding section 9-500.54; relating to local excise taxes. (TEXT OF BILL BEGINS ON NEXT PAGE) Be it enacted by the Legislature of the State of Arizona: Section [DELETED: 1.] 1. Title 9, chapter 4, article 8, Arizona Revised Statutes, is amended by adding section 9-500.54, to read: START_STATUTE9-500.54. Municipal transaction privilege tax and excise tax; rates; limit; voter approval; state share revenue withholding; applicability; definitions A. Notwithstanding any other law, ordinance, charter provision, resolution or special act, a city or town with a population of five hundred fifty thousand or more persons may not levy or assess a transaction privilege tax or excise tax that is imposed at a rate of more than two and one-half percent on any transaction privilege tax classification. B. Except as provided in subsection D of this section, the tax rate limit prescribed by subsection A of this section applies separately to each transaction privilege tax classification, regardless of the number of classifications, components or ordinances under which the transaction privilege tax or excise tax is imposed. C. A city or town may not adopt a new transaction privilege tax or excise tax, increase an existing tax rate, expand a tax base or impose a surcharge if doing so would cause the …

Read the full official text

Sponsors

• Jake Hoffman (R, SD-015) · primary sponsor

Latest actions

1. March 4, 2026: Senate third reading (15 votes)
2. March 4, 2026: Senate Committee of the Whole
3. March 4, 2026: failed to pass
4. March 4, 2026: do pass amended
5. February 5, 2026: Rules: proper for consideration
6. February 5, 2026: Assigned to Rules
7. February 5, 2026: Government: do pass amended
8. February 5, 2026: Assigned to Government
9. February 2, 2026: Introduced and first read

Votes

• THIRD failed to pass (March 4, 2026): 15 yea, 15 nay, failed
• GOV DPA (February 11, 2026): 4 yea, 3 nay, passed

Common questions

What is SB1745?

SB1745 is a bill in the Arizona Legislature (Fifty-seventh Legislature - Second Regular Session (2026)): local excise taxes; rate limit.

What does SB1745 do?

In its own words: An act Amending Title 9, chapter 4, article 8, arizona revised statutes, by adding section 9-500.54; relating to local excise taxes.

What is the status of SB1745?

Failed as of March 4, 2026. Latest action: Senate third reading (15 votes) (March 4, 2026).

Who sponsored SB1745?

Jake Hoffman (R, SD-015).

Where is the official record for SB1745?

On the Arizona Legislature website: https://apps.azleg.gov/BillStatus/BillOverview/85409/?SessionId=130