AZ SCR1039

Proposes a constitutional amendment to limit annual property tax levy increases to a maximum of 2% per year for all taxing entities, effective for tax years beginning after December 31, 2013.

Exempts ad valorem taxes and assessments levied to pay principal, interest, and redemption charges on bonded indebtedness or long-term obligations issued before January 1, 2014 from the 2% limit.

Allows voters to approve tax levies exceeding the 2% limit for a single tax year through election processes: two-thirds voter approval for single-county entities or separate two-thirds approval in each county for multi-county entities.

Requires the 2% limitation to increase each year to the maximum permissible amount regardless of whether the taxing entity actually levies taxes at that rate, and adjusts for property that becomes subject to or exempt from taxation.

Amends Article IX, Section 20 regarding expenditure limitations to update terminology and cross-reference the new property tax levy limitation provisions.