PHOENIX — Some Arizona lawmakers want to put a four-year pause on rate hikes like Gilbert residents recently saw for water.
A four-year moratorium on municipal hikes to sales taxes, fees and utility rates is one of at least 25 ballot measures state lawmakers are still considering.
State Rep. Justin Olson had proposed the temporary ban on tax, fee and utility rate increases earlier in the session, but the bill failed to advance out of the House. The measure was resurrected on March 25 as a strike-everything amendment, or striker, to House Concurrent Resolution 2016, a proposed ballot measure.
“I've heard from folks from all across Arizona that are saying, ‘We need this protection,’” he told ABC15.
He says taxpayers need relief after years of high inflation.
“What we're doing with this bill is we're saying ... ‘Don't add to the problem. Let's prevent government from increasing tax rates for the next four years,’” he said.
If passed by the Legislature, HCR 2016 would go to voters in November’s general election.
“This gives the voters the ability to put some restrictions in place, some protections in place,” said Olson, a Republican who represents Legislative District 10.
What HCR 2016 would do
HCR 2016 would block cities, towns and counties from raising sales taxes, fees or utility rates from July 1, 2026, to June 30, 2030. Increases based on inflation would be allowed, as would tax increases approved by voters.
“But if the cities are going to increase their tax rate at this time, when Arizonans are struggling with the high cost of living, they've got to get approval from the voters,” he said.
Olson said there should be some limits on how much a municipality can increase tax rates or utility rates.
The proposal comes as Gilbert residents are adjusting to a 25% water rate hike the town council approved in February. The rate hike, the third in three years, goes into effect in April’s bill.
Town staff had said the increase was needed so Gilbert could reduce its reliance on Colorado River water by investing in new wells and multimillion-dollar improvements to its water treatment plant.
The strike-everything amendment – which entirely replaces the text of a bill with another – was introduced in the Senate Government panel two weeks ago. The committee advanced legislation on a party-line vote.
“This bill is dangerous. It’s a dangerous ballot referral,” state Sen. Lauren Kuby said during the hearing. “It will restrict local governments and their ability to maintain essential services.”
The striker overwrote a proposed ballot measure to bar counties from using countywide voting centers and require them to conduct precinct voting.
Another two-page ballot?
If HCR 2016 passes the Senate, the House will need to hold a final vote in order to go to the ballot.
Like in 2024, when Arizonans decided on 13 ballot measures, voters could see a crowded ballot. Maricopa County election officials are already preparing for the possibility of another two-page ballot.
The November ballot already has at least three referendums, which the Legislature referred to voters last year.
And two groups are collecting signatures for competing initiatives to reform the state’s ESA school voucher program.
