AZ SB1333

Amends Arizona Revised Statutes section 9-101.01 to modify urbanized area definitions and incorporation restrictions for cities and towns.

Creates a phased reduction in urbanized area distances over a six-year period (from six miles down to zero miles) for counties with populations between 800,000 and 1.5 million persons through December 31, 2020, if a city or town does not approve an annexation petition within 120 days.

Adds section 9-471.04 allowing qualified electors (10% or more) in communities of 1,500+ persons to petition for deannexation from a city or town; requires the city or town to call an election within 60 days, with voting within 180 days.

Permits deannexed territory to remain liable for taxes to pay pre-deannexation municipal indebtedness, but allows property owners to become exempt by paying their proportional share of the debt.

Allows residents of qualifying communities to petition directly for incorporation as a new city or town independent of existing city/town approval requirements.