HB 4030 Arizona House · 57th Legislature - Second Regular Session

rates; fees; taxes; increase; moratorium

HB 4030 imposes a 4-year freeze (2026-2030) on most fee, tax, and utility rate increases for Arizona cities and counties. It prohibits local governments from raising fees above 2025-2026 budget levels, increasing transaction taxes beyond current rates, or creating new tax classifications, while banning tactics like renaming fees to bypass the rule. Exceptions include voter-approved tax hikes requiring 60%+ support in even-year elections. The bill directly affects all municipal and county budgets, with enforcement allowing affected residents or businesses to seek court action for violations. It covers fees for permits, services, utilities, and development, but does not restrict fee reductions or rate increases due to higher demand.

Bill status failed 2 of 4 stages cleared

Introduction

Feb 2026

Committee Review

Feb 2026

House Failed

Mar 2026

Governor

Introduced Feb 9, 2026 Last action Mar 11, 2026

Maddy AI version diff · 1 comparison

What changed between versions

Introduced Version → House Engrossed Version · 6 edits

MODERATE

The bill was reformatted and expanded to include provisions for both municipalities and counties, adding a new section for county fees and taxes. The municipal section now includes an exception allowing utility rate increases tied to inflation if certain conditions are met, and added exemptions for taxes funding water resources. The county section mirrors the municipal restrictions but includes additional exemptions for school district taxes.

Scope change

The bill's scope was expanded from applying only to municipalities to also applying to counties, creating parallel fee and tax restriction provisions for both types of local governments.

SCOPE

Added Section 3 and Section 4 to create parallel fee and tax restrictions for counties, mirroring the municipal restrictions in Sections 1 and 2.

REQUIREMENT

Modified the utility rate restriction to allow increases up to the rate of inflation if the municipality has not raised rates by 12% or more in the preceding four fiscal years.

EXEMPTIONS

Added exemptions for taxes funding water resource acquisition and delivery, and for ad valorem taxes levied by counties for school district support.

DEFINITION

Added new exemptions for taxes funding water resources and school district support in the county section.

TECHNICAL

Added legislative findings and intent sections to explain the rationale for the moratorium on fee and tax increases.

Removed the original 'Corrected' date stamp and reference title formatting from the header.

Floor votes · House Mar 11, 2026

How they voted

21–31

Failed · 8 other

Total votes 60

Mar 11, 2026

D Democratic27

21 Yea 6

77% Yea

R Republican33

31 Nay 2

93% Nay

Vote distribution

All Yea All Nay Mixed No data

Full legislative history

Actions timeline

Total actions

Key actions

Committee

Amendments

Mar 11, 2026

Lower · Passed

DPA

lower

Mar 11, 2026

Vote failed

House Vote: fail (21-31-8)

house

Feb 11, 2026

Lower · Passed

lower

1 primary · 0 co-sponsors