city election; transaction privilege tax

HB 2946 allows small Arizona cities (under 10,000 residents in counties under 150,000 residents) to hold special elections on March 10 or May 19, 2026, to continue a sales tax approved by voters in 2020 that expires by July 15, 2026. The bill requires cities to hold these elections if their charter mandates voter approval for such taxes and the current tax is set to expire. The election ballot must specify the exact tax rate approved in 2020, with no changes allowed. The law expires on December 31, 2027, after which the special election process is repealed.