AZ SB1745

Caps municipal transaction privilege and excise tax rates at 2.5% per classification for cities and towns with populations of 550,000 or more persons

Prohibits affected municipalities from adopting new taxes, increasing rates, expanding tax bases, or imposing surcharges that would exceed the 2.5% limit without voter approval

Exempts tax increases from the 2.5% cap if approved by voters at a consolidated election held in an even-numbered year

Authorizes the attorney general to enforce violations and directs the state treasurer to withhold state shared revenues proportionate to any unauthorized tax increase until the violation is resolved

Does not invalidate previously voter-approved transaction privilege or excise taxes and does not apply to ad valorem property taxes