Proposed Arizona Ballot Measure Would Freeze Municipal Rate Hikes for 4 Years

The measure aims to provide taxpayer relief after years of high inflation by preventing cities, towns, and counties from raising sales taxes, fees, or utility rates.

Apr. 8, 2026 at 2:23am

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An abstract, dynamic painting featuring overlapping, fractured geometric shapes in shades of blue, red, and gray, conveying the motion and energy of a political debate over a proposed municipal rate hike freeze.A conceptual illustration captures the heated debate over a proposed ballot measure that would freeze municipal rate hikes in Arizona for four years.Phoenix Today

Arizona lawmakers are considering a proposed ballot measure that would impose a four-year moratorium on municipal hikes to sales taxes, fees, and utility rates. The measure, known as HCR 2016, would block cities, towns, and counties from raising these charges from July 1, 2026, to June 30, 2030, with the exception of increases based on inflation or those approved by voters. The proposal comes as Gilbert residents face a 25% water rate hike, the third such increase in three years.

Why it matters

The proposed ballot measure is a response to concerns from Arizona taxpayers about the rising cost of living, including recent municipal rate hikes. If passed, it would limit the ability of local governments to raise revenue through taxes and fees, which could impact their ability to maintain essential services. However, supporters argue that taxpayers need relief and should have a say in any significant rate increases.

The details

The four-year moratorium on municipal hikes to sales taxes, fees, and utility rates is one of at least 25 ballot measures state lawmakers are still considering. The measure, known as HCR 2016, was initially proposed by State Rep. Justin Olson earlier in the legislative session, but the bill failed to advance out of the House. The measure was later resurrected as a strike-everything amendment to another bill. If passed by the Legislature, HCR 2016 would go to voters in November's general election.

  • The proposed moratorium would be in effect from July 1, 2026, to June 30, 2030.
  • The Gilbert water rate hike, the third in three years, goes into effect in April 2026.

The players

Justin Olson

A Republican state representative who represents Legislative District 10 and proposed the temporary ban on tax, fee, and utility rate increases.

Lauren Kuby

A state senator who criticized the proposed ballot measure, saying it would restrict local governments' ability to maintain essential services.

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What they’re saying

“What we're doing with this bill is we're saying ... 'Don't add to the problem. Let's prevent government from increasing tax rates for the next four years.'”

— Justin Olson, State Representative

“This bill is dangerous. It's a dangerous ballot referral. It will restrict local governments and their ability to maintain essential services.”

— Lauren Kuby, State Senator

What’s next

If HCR 2016 passes the Senate, the House will need to hold a final vote in order for the measure to go to the ballot. Voters in Arizona could see a crowded ballot in November, with at least three referendums already scheduled and two competing initiatives to reform the state's ESA school voucher program.

The takeaway

The proposed ballot measure reflects growing concerns among Arizona taxpayers about the rising cost of living, including recent municipal rate hikes. While supporters argue it would provide much-needed relief, critics warn it could restrict local governments' ability to maintain essential services. The outcome of this measure could have significant implications for how Arizona cities, towns, and counties manage their budgets and finances in the coming years.