AZ HB2744

Establishes a surcharge on bottled water sold at retail for off-premises consumption, levied at 5 cents per individual bottle, 5% of retail price for multi-bottle packages, and 5 cents per gallon for water dispensed or delivered into customer containers.

Exempts bottled water sold for on-premises consumption at restaurants and similar establishments operating under restaurant classification.

Requires retailers to collect and remit the surcharge to the Department of Revenue at the same time as transaction privilege tax payments, with separate accounting but no additional licensing or bonding requirements.

Directs net revenues first to the Department of Water Resources (up to $25 million annually), then to the Department of Environmental Quality Water Quality Division (up to $10 million annually), with remaining amounts distributed to counties, cities and towns according to existing formulas.

Requires a two-thirds majority vote in each legislative house for passage and takes effect immediately upon governor's signature.