AZ SB1335

Imposes a 2% annual cap on ad valorem tax increases for school districts beginning in tax year 2013, with the cap automatically increasing each year regardless of actual levies.

Exempts bonded indebtedness and long-term obligations issued before January 1, 2013 from the 2% limitation.

Allows school districts to exceed the 2% cap for a single tax year through voter approval requiring a two-thirds majority vote in an election held no later than the third Tuesday in May.

Applies the same 2% annual tax increase limitation to special taxing districts (property improvement districts, improvement districts, and other special districts that levy property-based assessments) beginning in tax year 2013.

Changes the designation of title 48, chapter 1, article 3 from "Compromise of District Taxes" to "District Taxes."