AZ SCR1038

Repeals existing constitutional limit on annual property tax levy increases and replaces it with a new 2% annual cap on ad valorem taxes levied by any taxing entity, effective for tax years beginning after December 31, 2013.

Exempts bonded indebtedness and other long-term obligations issued before January 1, 2014 from the 2% limitation.

Allows taxing entities to exceed the 2% cap for a single tax year with voter approval: two-thirds approval for single-county entities and two-thirds approval in each county for multi-county entities, or majority approval from property owners if no voters reside in the taxing entity.

Adjusts the tax limitation annually to account for changes in property subject to or exempt from taxation, using rates applied to comparable property.

Known as "The 2012 Property Taxpayer Protection Act" and requires submission to voters at the next general election.